The company, which is listed on London's junior Aim stock exchange, reported pre-tax profits of £19.2m for the year to the end of March, compared to £9m for the previous year.

It expects its profits to double again by 2018, with cumulative pre-tax profits for the next four years set to exceed £120m.

Telford said some of its properties were being snapped up just hours after going on the market, underscoring how homebuilders can profit from the scarcity of housing in the capital.

"The number of people who want to live in London continues to be far in excess of the supply of homes and this underpins the board's expectations of significant growth in output and profit levels over the next few years," the Telford Homes chairman, Andrew Wiseman, said in a statement to investors.

Earlier this month, Telford announced it had sold nearly all its stock for the current financial year, with £45m in deposits from forward sales dropping into its coffers since last June. With an average sale price of £400,000 Telford's homes are well within the eligibility criteria for Help to Buy, but none of its homes have been sold under any government mortgage subsidy scheme.

The developer, which sells around one third of its homes to foreign investors, played down fears of a housing bubble in the capital.

It said the imbalance between demand and supply "inevitably" led to rising prices and was a "fundamental issue" that would continue to underpin the market.

But it added that while mortgage finance was more available, lenders had not returned to the days of handing out high loan-to-value mortgages. "Applications are still carefully policed and therefore the conditions today for securing finance remain very different to those in 2007."